As we get older it is important to keep track of important documents – birth certificates, passports, driver's licenses, and definitely insurance certificates. Not only do these prove that people are covered in the case of accidents, but they also serve as important reminders to those who have them.
Insurance bases coverage on many factors – age, location, and risk factors. But it is also determined by how consistently one has kept themselves insured. This is a factor because it shows how consistently you are able to keep up with payments and remain informed on your coverage. It also provides information on the amount of your coverage and its limitations.
If your situation changes and you need more or less coverage, keeping these documents as a record becomes invaluable. It allows you to know where you need to improve your policy if you need more protection, or where you can edit it to remove coverage you no longer need and save money. It can also be useful in protecting you in the case of a dubious claim by proving when exactly you had coverage and for what, allowing you to get the proper reparations you need.
If there are any miscommunications between you and your claims inspector or insurance provider, your certificate of insurance can also be of use. It will outline the stipulations in your contract and what is covered. This provides proof of what you are owed and what was protected during the time of your claim. This helps in liability cases where you are being asked to compensate for damages, or when you are asked to be compensated for damages to your own property and are being met with resistance.
Make sure to keep account of any cancellations that are being made or have been made, as these may cause changes to your protection. These edit the protections outlined in the certificate and it is very important that the new protections are read carefully and outlined exactly. Although canceling policies can save you money, this money can be lost just as quickly in the case of a claim to that now not-covered property.
Remember, you are human and so is your insurance team. Humans can make mistakes or forget details, so it is important to keep a proper account of your details and protections in documents like this. If you need to make sure that your certificate is up to date and complete, reach out to your insurance agent and they will be happy to go over your coverages to make sure that everything is properly represented.